Joy in iMacville

About the same time I was posting yesterday's Lament for a Budget iMac, MacCentral was publishing
the
news that Apple "has decided to keep two original CRT iMacs
available for the education market and consumers - both systems are
priced under $1,000."

Of course, that didn't stop readers from writing in to call me
foolish and worse for believing Steve Jobs when he said the new iMac
marked the death of CRT computing. After all, how could I be so stupid
as to not even check and see that Apple was still selling CRT iMacs
online?

I recommend you take you "Lament for a Budget iMac"
web page down and hope nobody remembers which uninformed journalist
wrote it. You are embarassing yourself with baseless whining.

Please do some research BEFORE writing and posting an
article. It makes you look less foolish.

...but Apple *is* an "overpriced elitist computer
company," isn't it? Can it afford to be otherwise?

The new iMacs constitute yet one more Apple product
line that pushes design, however functional, over price. Do you expect
this to change? I don't think it will with the iMac or any other Apple
desktop product - not for a long time.

Truthfully, I don't think most of the folks shopping
for a $799 computer solution are considering Apple. Apple simply cannot
compete with Dell's business model or, worse yet, with chop shops that
assemble their own PCs from cheap parts on University contracts.

You lament there isn't something cheaper than $1199.
Check your facts first before lamenting something that can be held
against us Mac users (like our machines being more expensive). They
aren't. Please revise your article. It stinks of someone's PC user's
propaganda.

While it is lamentable that Apple is appearing to
abandon the budget entry level Mac buyer, I believe they are doing what
is necessary to be profitable.

No offense, but according to these MacCentral's
interview, your editorial commentary on Apple abandoning users on a
budget is way out in left field. You don't do Mac users any favors by
prematurely flying off the handle and giving Windoze drones another
invalid yet seemingly 'authoritative' viewpoint to use as to why buying
a Mac doesn't make sense.

Did Steve Jobs officially write-off the CRT iMacs? I
have been reading that Apple still has $799 iMacs in their on-line
store. I know he said the new iMac signaled the "Death of the CRT", but
did he actually say that no more CRT iMacs would be sold?

I don't doubt that what you said is true, but is it
actually feasible to abandon that pricepoint.

For all the reasons you listed, it would be dumb to
abandon the low end. If Apple is saying bye-bye to the CRT, I think it
will be an extended farewell...

I totally agree with your recent editorial. A budget
iMac puts it in range of not less than 3 close relatives, not mention
friends. I anticipate recommending the 600 MHz Dalmation from Small Dog
to those people.

I was so glad when I went to the Apple store and saw
the $800 and $1000 "classic" iMac still there. I hope they can stay
there. I completely agree that the new iMacs are great values, but
Apple needs to have a complete $800 system in the stable.

Good for them - that's exactly what I said they needed to do.

Yes, it was foolish to take Steve Jobs at his word. After all, every
time Apple introduced a new PowerBook, iBook, Power Mac, or iMac since
Steve's return, it immediately discontinued the previous model - and
sold off the old inventory as quickly as it could.

Yes, it was foolish to see that Apple was still selling CRT iMacs
and imagine that this wasn't a close-out. (Besides, Apple can't ship
LCD iMacs yet, so it only makes sense they'd sell their existing
inventory.)

But, no, those who said that Apple had to abandon the sub-$1,000
market were wrong. Those who said that Apple was only interested in
customers who could plunk down $1,299 and more for an iMac were wrong.
Apple has not abandoned the low end.

Apple will continue selling CRT iMacs for the foreseeable future,
with the 500 MHz/128/20/CD-ROM iMac selling for $799 in indigo and the
600 MHz/256 MB/40 GB/CD-RW iMac selling for $999 in either snow or
graphite.

In fact, this plus the 14" iBook really changes the Mac Matrix from two line to three - entry-level
(CRT iMac and 12" iBook), midrange (LCD iMac and 14" iBook), and top
rung (Power Mac G4 and TiBook).

Apple realized that they had schools to fill with iMacs and
individuals who won't budget $1,299 for a computer. As I said, "killing
off the successful, affordable sub-$1,000 iMac won't help Apple
increase market share."

There are three kinds of Mac buyers:

repeat buyers, who tend to be loyal to the Mac

Windows converts, who aren't easy to win over

first-time buyers, who probably have some computing experience

Apple's greatest potential for climbing out of its market share
death spiral is first-time buyers, since once they become Mac owners
they are likely to remain loyal. These users don't have dozens of
applications and games for Windows. They don't have a bunch of PC
peripherals. They just want to be productive.

Thanks to iTunes, iPhoto, iMovie, AppleWorks, Internet Explorer, and
Apple's OS X email client, these people can buy a new iMac and
become productive immediately. They can connect MP3 players, digital
cameras, and digital video cameras easily - a card Apple must play
effectively against the Wintel world.

Sure, we'll win over some PC users tired of the instability, sick of
the license fees, scared of the viruses, or fearful of .Net, but most
Windows users are not going to switch to the Mac. New users and
first-time buyers are the key to growing market share.

A lot of those potential customers are seeing "Dude, you're getting
a Dell" ads with a $899 price tag featured very prominently. They might
not realize that this doesn't include shipping or the kind of wonderful
application suite Apple provides, but the price sticks in their
minds.

People prepared to spend $899 will ante up for shipping, some
software, and maybe some accessories, but they will quickly dismiss a
$1,299 computer as too expensive. That's why I'm thrilled to learn that
Apple plans to keep the CRT iMac alive and inexpensive at least in the
near future.

Comparing a $799 or $999 iMac with an $899 Dell - that's something
that's more likely to tempt first-time buyers than an $1,199 iBook or
$1,299 iMac. And that makes keeping sub-$1,000 iMacs available crucial
to Apple's future.

Apple, too often perceived as an elitist brand with overpriced
products, needs to remain as accessible to those on tight budgets as
possible. After all, once they go Windows, we've probably lost them for
good.

As I said, "Far better for Apple to keep the classic iMac in
production for schools, businesses, families, and individual users who
don't want to budget over $1,000 for a new computer. Even if the
classic iMac represents only 5% of Apple's sales, by embracing the
budget buyer Apple can fight the stigma of being an overpriced elitist
computer company."

Dan Knight has been using Macs since 1986,
sold Macs for several years, supported them for many more years, and
has been publishing Low End Mac since April 1997. If you find Dan's articles helpful, please consider making a donation to his tip jar.

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We believe in the long term value of Apple hardware. You should be able to use your Apple gear as long as it helps you remain productive and meets your needs, upgrading only as necessary. We want to help maximize the life of your Apple gear.